Dutch Pension Asset Manager PGGM Shuns Wal-Mart Stock

July 1 (Bloomberg) -- Dutch asset manager PGGM NV, which
oversees more than 140 billion euros ($183 billion) in
retirement savings, said it will cease investing in Wal-Mart
Stores Inc. because the world’s largest retailer declined to
address its concerns over labor relations in the U.S.

The exclusion followed “a protracted period” in which
PGGM expressed disquiet about “poor labor relations” in Wal-Mart’s domestic operations, the Zeist, Netherlands-based
investor said in a statement today. Wal-Mart’s board declined to
directly discuss the matter, PGGM said. A European spokesman for
the retailer didn’t immediately return a call seeking comment.

PGGM is selling Wal-Mart shares worth about 200 million
euros that it held on behalf of clients, Maurice Wilbrink, a
spokesman for the asset manager, said today. It isn’t the only
party critical of the retailer’s working conditions. Labor
groups have also called for improvements, with protesters from
OUR Walmart, a union-backed employee group, descending on the
headquarters in Bentonville, Arkansas for last month’s annual
meeting.

PGGM said it opposes Wal-Mart’s policy in the U.S. that
restricts employees’ opportunities to organize themselves in
unions. The money manager also asked questions about allegations
of bribery in its Mexican unit, according to today’s statement.

PGGM retained its holdings in Wal-Mart de Mexico SAB and
has indicated it wants to discuss the matter, Wilbrink said. The
asset manager’s biggest client, Pensioenfonds Zorg en Welzijn,
held 34 million euros of Wal-Mart shares at the end of 2012,
according to an investment list on the fund’s website.

Stichting Pensioenfonds ABP, the biggest Dutch pension fund
with 292 billion euros in retirement savings, already added Wal-Mart to its list of excluded investments as of January 2012. At
that point PGGM still saw reasons to maintain a dialog with the
company, Wilbrink said.

To contact the reporter on this story:
Maud van Gaal in Amsterdam at +31-20-589-8530 or
mvangaal@bloomberg.net